Sensex, Nifty Begin July on Positive Note Amid Global Trade Optimism

Markets Open July Strong as Global Trade Sentiment Improves

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: July 01, 2025

Summary: Indian stock markets opened higher on July 1, with the Sensex gaining over 140 points and the Nifty nearing 25,550. The start of the new quarter saw investors' trust rise thanks to a strong global picture and new hopes for a trade deal between the U.S. and India.

The Indian stock market began the second half of 2025 on a slightly upward trend. This was owing to robust global markets and high expectations for future trade talks between the United States and India. The Sensex increased 146 points early Monday, trading near 83,753, while the Nifty50 gained 33 points to 25,550.

What’s Driving the Rally?

The upward drive came after Asian and US markets performed well over the weekend. Investors are optimistic that India and the United States will achieve a preliminary trade agreement before the July 9 tariff deadline, which will help both economies avoid heavy import duties and improve global trade confidence.

A weakened US currency also boosted markets, perhaps encouraging foreign investment inflows into emerging nations such as India.

Sector Highlights

Top gainers on the Sensex included Apollo Hospitals, Asian Paints, Bharat Electronics, M&M, Reliance Industries, and Jio Financial, all of which posted intraday gains of up to 4%.

However, mid- and small-cap stocks continued to be under pressure. The Nifty Midcap and Smallcap indexes fell modestly, indicating investor nervousness in riskier categories.

Sector-wise, PSU banks, media, and metal companies suffered, while large-cap stocks held steady.

Global Cues in Focus

Investor sentiment got a lift from positive developments in U.S.–China trade talks, which raised hopes of similar progress between India and the U.S. The 90-day tariff respite ends on July 9, and investors are looking for evidence of a breakthrough.

Meanwhile, Wall Street’s recent rally and strong June manufacturing data from China have added to global optimism, encouraging investors to enter equity markets at the start of the new quarter.

What to Expect Ahead?

Market analysts predict that unless there is significant policy news or external shocks, the Nifty will continue to move in the 25,000-25,600 region in the immediate term. However, a definite settlement in the India-US trade talks could boost the index.

However, a delay or failure in the talks might cause market volatility on both the global and domestic levels.